Information set forth herein should be understood in light of such risks. Navios Partners does not assume any obligation to update the information contained in this conference call. The agenda for today's call is as follows: First, Ms. Frangou will offer opening remarks Next, Mr. Decibis will give an overview of Navios Partners segment data. Next, Mrs. Tironi will give an overview of Navios Partners financial [indiscernible] [indiscernible] Mr. Vande Valle will provide an industry overview. And lastly, we'll open the call to take questions. Now, I turn the call over to Navios Partners' Chairwoman and CEO, Mrs. Angeliki Frangou. Angeliki? Good morning. And thank you all for joining us on today's call. I pleased with the results for the first quarter of twenty twenty five. In which we reported revenue of $3.00 $4,100,000 and EBITDA of $147,600,000 and net income of $41,700,000 Earnings per common unit were $1.38 for the quarter. The economic environment over the past month has been particularly uncertain with a global expectation being driven by the unprecedented U. S. Tariff proclamation followed by revisions [indiscernible] and exceptions. In response, sentiment and variance in The U. S. And other financial markets were extraordinarily volatile recovering on last week in The U. S. To the pre tariff announcement level.

I would add that the tariff announcements conceal an underlying volume due to the wars in Ukraine and The Middle East. I remarked last quarter that we are waiting for more information as the U. S. Administration did not provide concrete tariff roadmap. In general, this continues to be the case. As the U. S. Administration tactically maneuvers towards a tariff regime furthering its policy aspiration relating to national security and fiscal austerity. However, a faint outline is starting to emerge. While the future may be challenging, it appears the potential impact on maritime transportation may not be as severe as we initially feared. And I note that during this recent period of uncertainty, [indiscernible] the spot rate market has generally been healthy. Although uneven between the maritime sectors. Prepaying for difficult periods is part of our job requirement. In prior period, [indiscernible] when settlement allowed, we enter into long term charter arrangement. We currently have a contract backlog of $3,400,000,000 In addition, because of this and other measures, our contracted revenue is $12,500,000 larger than our total cash expenses the remaining nine months. Of 2025. We are also actively managing our interest rate risk Today, fixed cost financing and hedging arrangements, around 30% of our long term debt has a fixed interest rate of 5.5%. [indiscernible] Please turn to Slide six.

Navios Partners is a leading publicly listed shipping company with 174 vessels. These vessels have an average age of 9.9 years. And are in three different segments: and 16 asset classes. As you can see, the vessel value is approximately equal in each sector. We ended the first quarter with $343,000,000 of cash on that balance sheet. Our net LTV as of the end of the quarter Q1 was calculated at 35.2% slightly up from last quarter. Please turn to Slide seven. We sold three vessels with an average age of 19.1 years for around $35,000,000 We also received four previously announced new building vessels with employment. To Aframax LR2 tankers, which were fixed at an average rate of 26,003 and $49 net per day for five years, and two LNG dual fuel 7,700 TEU container ships which were fixed at an average rate of $41,753 net per day for twelve years. For the remaining nine months of 2025, contracted revenue exceeds total cash expense by $12,500,000 We have 14,117 remaining open and index days 34% were available days So we have significant cash generated opportunities. Please turn to Slide eight, where we outlined our return of capital program. Under our dividend program, we paid $0.2 dividend per unit annually.

In the first quarter of twenty twenty five, we paid a dividend of $1,000,000 which is slightly less than the previous year's run rate because of our buyback program. In addition, so far in 2025, we repurchased four and twenty three thousand nine hundred and eighty four common units for $16,100,000 including dividends we returned a total of $17,600,000 in 2025. Under the entire unit repurchase program, we invested $41,100,000 in 913,939 common units purchasing around 3% of Navios Partners public float. As measured when the program was launched. We estimate that we effectively returned $2.9 per unit of value through the purchases. As of 05/01/2025, we had $58,900,000 available under our unit repurchase program. The volume and time of further repurchases will be subject to general market and business condition working capital requirements and other investment opportunities among other factors. Please turn to Slide nine. Where we focus on how we execute our strategy in a period of increasing uncertainty. At the top left of the slide, we outline the challenges we have been addressing. I can share we assemble our team regularly to dive into the details of emerging information in an attempt to understand how various risks are evolving.

While extreme outcomes remain possible, the market has been generally adapted to this entitlement and the underlying rate market relatively healthy On the top right part of the slide, we underline how we are addressing the uncertain market and the things we have accomplished. As noted earlier, the $3,400,000,000 in contracted revenue revenue stems from our actions in past markets where sentiment allowed us to enter into long term charters. This is not the case now. But we remain alert for future possibility. We are also focused on our interest rate risk. And we have been hedging these risks with hedges that will never require posting additional collateral. At the bottom of the slide, we continue to provide a view of the evolution of our fleet through selected metrics. As you can see, our fleet size and age about the same as they were on the year end 2022. However, about 26% of our fleet was acquired in the past four years. So we maximize energy efficiency by maintaining a fleet of useful vessels with the latest technology. On the financial side, we focus on deleveraging and reduced net LTV from 45% at the end of twenty twenty two to 35.2% at the end of the first quarter twenty twenty five.

I'll now turn the presentation over to Mr. Stratos Desyprix, Navios Partners Chief Operating Officer. Stratos?

Thank you Angeliki and good morning all. Turn to slide 10, which details our operating free cash flow potential for the remaining nine months of 2025. We fixed 66% of available days at a net average rate $25,703 per day. Contracted revenue exceeds our total cash expense, which about $12,500,000 we have 14,117 remaining OPER or index linked days should provide substantial additional cash flow. So that you can perform your own sensitivity analysis on the right side of the slide, we provide our forty one thousand nine hundred and one available days per vessel type. Please turn to slide 11. We are constantly renewing our fleet in order to maintain a junk profile. We reduced our carbon footprint by modernizing our fleet benefiting from newer technologies and advanced environmental friendly features. In 2025, we took delivery of four vessels. LR2Aframax vessels that have been chartered out for five years at an average of 26,000 hundred and $49 net per day and two seven thousand seven TEU LNG dual fuel container ships that have been shuttered out for twelve years at an average rate of $41,753 net per day. Following these deliveries, we have 21 additional newbuilding vessels delivering to our fleet through 2028 representing $1,400,000,000 of investment.

In containerships, we have four vessels to be delivered with a total acquisition price of about 400,000,000.0 We have mitigated this risk with long term creditworthy charters expected to generate about $300,000,000 in revenue over a five year average charter duration. In tankers, we have 17 vessels to be delivered a total price of approximately $1,000,000,000 charter out 15 of those vessels an average period of five years expected to generate aggregate contracted revenue of about $600,000,000 have also been opportunistically replacing older vessels. In 2025, we sold three vessels with an average age nineteen point one years for about $35,000,000 Moving to slide 12, have a strong backlog of contracted revenue. That we built over the previous years that create visibility an uncertain environment. Our total contracted revenue amounts to 3,400,000,000.0 point four billion dollars relates to our tanker fleet dollars 200,000,000.0 relates to our drybulk fleet and $1,800,000,000 relates to our containerships. Charters are extending through 02/1937 with a diverse group of quality counterparties. I now pass the call to Eric Cironi, our CFO will take you through the financial highlights. Eric?

Thank you, Stratos, good morning all. I will briefly review our unaudited financial results for the first quarter ended March 31, 2025. The financial information is included in the press release and is summarized in the slide presentation available on the company's website. Moving to the earnings highlights on Slide 13, Total revenue for the first quarter of twenty twenty five decreased by 4.6% to $3.00 4,000,000 compared to $319,000,000 for the same period in 2024, [indiscernible] to lower fleet time charter equivalent rate available days and revenue from freight voyages. Our fleet time charter equivalent rate for the first quarter of twenty twenty five decreased by 1.1% to $21,271 per day our available days decreased by 0.6% to thirteen thousand four hundred and fifty six days compared to Q1 twenty twenty four.

In terms of sector performance, the TCE for our container fleet increased by 2.2% to $30,501 per day. In contracts, the TCE rate for our dry bulk and tanker fleet was 10.57.1% lower, respectively, at $12,722 per day for drybulk and $26,082 per day for tanker vessels. EBITDA was adjusted as explained in the Slide footnote. Excluding these amounts, adjusted EBITDA for Q1 twenty twenty five decreased by $11,000,000 to 154,000,000 compared to Q1 twenty twenty four. The decrease is driven primarily by a 14,000,000 ROAD revenue and 7,000,000 increase in vessel operating expenses, mainly due to a 4.8% increase in our OpEx days and the change in the composition of our fleet partially mitigated by $12,000,000 decrease in time charter and voyage expenses due to less freight voyages. Adjusted net income for Q1 twenty twenty five was $48,000,000 compared to $71,000,000 in Q1 twenty twenty four. Adjusted net income decreased by $24,000,000 mainly due to an $11,000,000 decrease in adjusted EBITDA and $9,000,000 increase in depreciation and amortization and a $4,000,000 increase in interest expense and finance cost net.

Earnings and adjusted earnings per common unit were 1.38 percent and $1.58 respectively. Turning to Slide 14, I will briefly discuss some key balance sheet data. As of March 2025, cash and cash equivalents, including restricted cash and time deposits, excess of three months $343,000,000 During the quarter, we paid $33,000,000 under our new building program net of debt. Concluded the sale of one vessel for $8,000,000 adding about $1,000,000 cash after debt repayment.

Long term borrowings, including the current portion net of deferred fees remained in line with 2024 year end figures.

At $2,100,000,000 despite the delivery of three new building vessels during the quarter.

Net debt to book capitalization improved to 34.1%. Slide 15 highlights our debt profile. We continue to diversify our funding sources between bank debt and leasing structures. Following our $88,000,000 interest rate hedge, in Q1 twenty twenty. 2530% of our debt and bareboat liabilities have fixed interest at an average all in rate of 5.5%. We also have mitigated part of the increased interest rate cost by reducing the average margin for our drawn floating rate debt and bareboat liabilities to 1.9%. I would like to note that the average margin for the undrawn floating rate debt of our new building program is 1.4%. Our maturity profile is staggered with no significant balloons due in any single year.

In Q1 twenty twenty five, Navios Partners agreed to extend the majority of a sale and leaseback facility for 11 vessels until 2029 at improved terms. I now pass the call to Vincent Vandewale, Navios Partners Chief Trading Officer, to take you through the industry section. Vincent?

Thank you, Erie. Please turn to Slide 17. Visibility into the global trade has been clouded by many tariff announcements. It appears that 3.7% of the global trade will be subject to declared tariffs. Announced tariffs are not expected to have a significant effect on tankers and dry bulk, [indiscernible] grains. The heaviest tariff impacts will be on containers, cars, and LPG. We will continue to monitor how further developments affect global trading. Please turn to slide 18. U. S. Tariffs on Chinese imports rose to 145% on a wide range of goods as of early April. China retaliated with 125% tariffs. The U. S. Also imposed tariffs of 10 to 50% on most other countries. On April 9, The U. S. Paused all tariffs for ninety days except for the tariffs on China. The U. S. Is currently negotiating tariffs on a country by country basis. On April 17, USTR released a revised Section three zero one fee proposal targeting Chinese vessel operators and Chinese built ships with extra port fees when calling U. S. Ports. These fees are to take effect from October 2025. Please turn to Slide 19 for a review of the current trade disruptions. The Red Sea entrance leading to the Suez Canal is a strategic maritime transit point.

It continues to operate at restricted transit levels through the April transit through the Suez Canal were lower than the 24 average. Red Sea disruptions have caused rerouting of ships via the Cape Of Good Hope, raising costs and distances last year. Should the situation remain unchanged during the rest of 2025, we believe that total TUM TU miles are projected to experience modest improvements across all sectors. Before we move to the analysis per sector, please be reminded that the analysis that follows may be materially different depending on final outcome of the tariff discussions. Please turn to slide 21. For the review of the dry bulk industry. The seasonal lower Q1 developed due to weather patterns cyclones and typical seasonality. Rates for all three asset classes declined Q1 twenty twenty five versus Q1 twenty twenty four And in Q1, average revenue declined 46% for 38% for Panamaxes, and 32% for Supra. Going into Q2, the spot market started to recover due to seasonally higher volumes of iron ore bauxite and grain. Dry bulk trade is expected to decline by 1.2 in 2025 while ton miles are expected to decrease by 0.4%. Ton miles are positively affected by Atlantic export of iron ore and bauxite from West Africa destinated primarily for China and Southeast Asia.

Which cushion the fall in overall demand and supporting Capes in particular. Please turn to Slide 22. The current order book stands at 10.3% of the fleet. Net fleet growth is expected to be 3.1% in 2025 as owners remove tonnage that will be uneconomical due to the IMO 2023 CO2 rules. Vessels over 20 years of age are about 11.5% of the total fleet which is slightly higher than the order book. In concluding our dry bulk sector review, slowing demand growth for natural resources may be balanced by restrictions in transiting the Red Sea long haul trades of bauxite, and iron ore from West Africa to Asia, and a low pace of new building deliveries. This should support higher freight rates as the freight future market currently indicates particularly for Capes. Please turn to Slide 24 for the review of the tanker industry. World GDP is expected to grow by 2.8% in 'twenty five based on the IMF April forecast. The IEA projects 700,000 barrels per day increase in global old amount in 2025. Chinese crude imports slowed in 2024 averaging about 11,100,000 barrels per day down 2% or 200,000 barrels per day compared to 23 Imports in March were 12,000,000 barrels per day, up 4% year on year leaving Q1 imports at 11,000,000 barrels per day slightly down over twenty four Crude tanker earnings have remained healthy in recent after firming in February with support from Asian refineries that replaced Russian and Iranian barrels with non sanctioned imports.

The geopolitical backdrop remains fluent. With tighter sanctions uncertainty regarding Red Sea passage, possible Russian Ukraine war resolution and consequences from the tariff war. In addition, OPEC plus announced the unwinding of their 2,200,000 barrels per day voluntarily export cuts from 04/01/2025 where after a series of upward revisions announced the increase in production by about 1,000,000 barrels per day. The BTTI average nine zero five for Q1 twenty twenty five five percent down on Q4 twenty twenty four while the BCTI averaged seven zero six some 24% above Q4. However, rates remained in line with the long term averages. Overall, the political environment along with the normal seasonality reduction of the fleet due to the sanctioned vessels and a lower global oil inventory should support crude freight rates. Please turn to slide 25. On January 1025, the U. S. Office of Foreign Assets Control OFAC, issued new sanctions targeting Russian oil revenue with The U. S. Adding 186 ships mostly trading Russian oil to its sanctions list. OPEC's actions more than doubled the sanctioned vessels. The total sanctioned vessels is now about 10% of the tanker fleet. Both China and India have said that they will not allow OFAC sanctioned vessel to discharge.

VLCC spot rates for Middle East to China as of April 29, are about 125% higher than the day before OFAC sanctions were announced. On 02/04/2025, The U. S. Reinstated the maximum pressure campaign against Iran instructing U. S. Agencies to rigorously enforce existing economic sanctions and introduce news measures targeting Ireland's ore exports. The stated goal is to reduce all exports to zero from the recent 1,400,000 barrels per day. OFAC has sanctioned additional vessels since its initial announcement, mostly in regards to Iranian coal exports. Please turn to slide 26. Seaborne crude and product tankers continue to be affected by the war in Ukraine, both crude and product markets remains at healthy level. Levels. Please turn to slide 27. The VLCC fleet contracted 0.1% in 2024 and is expected to contract in 2025. This decline can be partially attributed to owners' hesitance to order vessels in light of unresolved technology requirements relating to CO2 restrictions. The current order book is 10.8% of the fleet or 98 vessels after a record ordering spree in 'twenty four. Vessels over 20 years of age are about 19.8% of the total fleet or 81 vessels which is about two times the order book.

Turning to Slide '28, product tanker net fleet growth was 1.7% for 2024 and is expected to increase to 4.3% in 2025. The current product tanker order book is 2121.5% of the fleet slightly more than the 18.8% of the fleet, which is plus years of age. Concluding the tanker market overview, tanker rates continue at healthy levels. The combination of moderate growth in global oil demand, OPEC sanctions reducing the numbers of available vessels new longer trade routes for both crude and products and the IMO twenty three regulations should provide for a healthy tanker earnings going forward. Please turn to slide 30. For the review of the container industry. The Shanghai container freight index is currently at thirteen forty one the lowest since December 2023 and down approximately 64% from the recent peak of 3,734 on 07/05/2024. We note that was the highest level outside the pandemic pandemic area. Container ship rates remain firm because of the Red Sea causing TEU miles to increase by about 18% in 2024. Firm time charter rates should remain for the duration of the Red Sea disruption. However, continuous and record new building ordering and record fleet growth should eventually modify these gains.

Tariffs, particularly the current 145% tariff on U. S. Imports of Chinese goods, will have a significant effect on demand and trade should they remain at these recent announced levels. Turning to Slide 31. The current order book stands at 28.5% against 13.7% of the fleet 20 years of age or older. About 80% of the order book is for 10 ks TEU vessels or larger. Although trade is expected to grow by 0.3% in 2025, Net fee growth is expected to grow by 6.3% in 2025, following a 10.1% net fleet growth in 2024. Additionally, should Suez Canal transit return to previous normal levels, supply and demand fundamentals will be challenging However, a world GDP growth of 2.8% for 2025 provides a somewhat positive counterpoint for a challenging 2025. If the tariffs and especially the 145% on U. S. Imports on Chinese goods remain, it will have a significant effect on the demand and trade. This concludes our presentation. I would now like to turn the call over to Angeliki for her final comments. Angeliki?

Thank you, Vincent. This completes our formal presentation, and we open the call to questions. We'll take our first call.

Question from Omar Nokta with Jefferies.

Thank you.

Hi, Angeliki. Hi, everyone. Good afternoon. Thank you for the update. Clearly a lot of fast moving, very quick changing dynamics in the geo macro. Clearly, you've done a good job obviously navigating through this. I think on slide slide nine, you highlight the securing the liquidity and having the revenue stability and basically optimizing the balance sheet as much as you can in this environment has been first and foremost what you've been focusing on. I guess as we think about how things are from here, it seems that share repurchases have somewhat accelerated this year relative to the pace that we saw in 2024. Just wondering you kind of think about how things are situated today, any change in how you approach capital allocation, whether the buyback, you know, pace changes or your fleet renewal that takes a backseat, you focus on cash preservation? Any kind of changes or shifts you would say in this environment? For NAFIOZ?

Thank you, Omar, and good morning to you. To be honest, there is one big thing patience.

Patience patience. I mean, we are living in incredible uncertainty. I mean, on top of two wars that were already complicated, the Ukrainian and Russian war and the Middle East war, We are basically having a U. S. Tariffs The U. S. Administration is looking really to reshape trade on volume and origination of goods. So this is a very big thing because basically we are changing the global trading [indiscernible] To what extent, how this is something we will have to see?

And to be honest, during this very uncertain times, what we did before is the most important thing. It's more important that what we are doing today. And before this period, what we did, we as you very well said, in Page nine, we built liquidity, 40,000,000 in our balance sheet. We built $303,400,000,000 of contracted revenue giving us flexibility on the medium Also, With that, we have short term flexibility. Our operating cash flow, we have $12,500,000 excess of contracted revenue this year on the nine months over our total cash expenses on the last two on the twenty five on the ninth This gives you flexibility of thinking. On top, you look you focus on your balance sheet. You focus on deleveraging. We provided a 22% deleveraging from the end of twenty twenty two to today We renew our fleet modernize our fleet And also, as you can see today, we're also concentrating on mitigating interest rate risk. We have 30% of our debt [indiscernible] Because I think in this environment, you are better off to be more conservative. And we are fixed at an average rate of 5.5 Now on top of all this, we look on how we return capital to our how we can return to our shareholders.

To our unitholders And we have a program a dividend program and a buyback. And we are here looking on that as well as we're looking on on what the new environment will develop. This is not this is a situation that we need to almost every day concentrate and see what is changing. Look at the news. Of last night You wrote a piece about the hoodies. What was the day before? We see that today there is tomorrow, there's going to be negotiations between U. S. And China. There was a stimulus in China. [indiscernible] In this kind of environment, you need to be focused on the important thing and keep all the flexibility there.

Yes. Thanks Angelika. That makes a lot of sense Focus on what you can control. I guess maybe just in that that context, you were obviously very not this year, but in prior years, had been very acquisitive, especially on new buildings where there are opportunities to enter into long term charters to derisk those investments. And you did so in a fleet renewal process by selling the older ships. How are you thinking about that right now? Are there still opportunities given the noise in the market that continue to acquire assets, whether they're new buildings or in the open market that come with contracts? Or has that quieted down in this market?

Listen, the the big long term charter deals where you will you will have a new building with a charter It's not It's not at this point. There is a lot of uncertainty, so you don't see But today, you may see new build development. United States is repositioning. We have to be very aware of that. And that will mean different trading patterns that will have to be serviced by different vessels with particular specifications. So we are very open to this. You need to follow exactly how it is developing I mean United States will have needs that will have to be secured by a fleet that they will like have visibility about. I don't think that today we can make you can say one way or the other. You need to be very flexible and see how you position. The good thing is that we are basically [indiscernible] This is something that makes us feel comfortable having a modernized fleet. And we have a lot of ability to wait and see how this is developing. We don't have to rush into one direction or the other.

Certainly. And maybe just one final one. It you don't mind, just in terms of the three main parts of the business are containers, tankers, dry bulk, each are moving in their own direction with some excitement potentially ahead for tankers with OPEC know, dry bulk is still kind of meandering perhaps. Not exciting, but not bad. And then containers up until very recently, you had a very active we would say, [indiscernible] appetite for charters. Would you kind of from your vantage point what are you seeing in terms of asset values in those segments? Is there one that feels maybe very firm perhaps one that's that's whether it's rising or is there softness you see in one segment Just can you give some color from your eyes? On vessel values?

I mean, have seen that tankers and especially these you have a very good have very good with assumption of fleet of 10% it gives you and the order book, it gives you a good position and you see that the values of the vessels have been in this market, there is a lot of sales, and you see it in a in a good level. But I will say one thing. What I was very surprised that given the the uncertainties that we were facing it is amazing how you can see that the spot market which is really an indication of how we are transacting today is a If you want to have a real data on every day, even in the darkest moment is what is the spot market. And you can say that in dry bulk, which you have a real depth of the spot market, you see that it was healthy levels. I mean, don't forget about a month ago, the world looked like we are coming to a new Great Depression. So having this data point where you show not talking SFAs, I'm talking spot market, at this point where a person an entity is willing to trade With all this uncertainty, I think the world kept quite well, I will say.

So patience, I mean, the good thing is we have a lot of we have done a lot of work prior to this situation and this gives us the ability to have time to think and see how we can go to the next opportunities.

Yes. Thanks, Angeliki. That's very helpful.

Thank you.

This does conclude today's question and answer session.

I will now turn the program back over to Angeliki for any additional or closing remarks.

This completes our [indiscernible] Q and A Q1 results. Thank you.

This does conclude today's program. Thank you for your participation. You may disconnect at any time.